Iberia reacts to strike threat as talks fail

Iberia, the Spanish airline operated by International Consolidated Airlines Group (otherwise known as IAG), has deemed the strikes convoked by labour unions to be excessive and an intolerable threat to the company, its customers, and society.

Iberia, the Spanish airline operated by International Consolidated Airlines Group (otherwise known as IAG), has deemed the strikes convoked by labour unions to be excessive and an intolerable threat to the company, its customers, and society.

The airline has reacted to the labour unions' decision on Wednesday after talks in an arbitrage procedure failed to produce any agreements.

According to Iberia, its latest proposal translated into less lay-offs and smaller salary cuts than initially planned. Additionally, it included the use of early retirements instead of layoffs.

"At this challenging moment that Iberia is going through, the announcement of strikes only worsens the company's difficult situation. The company will use legally-available mechanisms to return to profitability and become viable," the company explained.

"Once the strikes are confirmed, Iberia's priority will be to provide customers with solutions and alternatives as it has done in the past."

VUELING TAKEOVERIn November, IAG launched an offer of €7.0 per share for low-cost airline Vueling through its wholly-owned subsidiary Veloz Holdco.

In a filing with Spanish market regulator CNMV on Wednesday, IAG announced that Veloz Holdco "has resolved not to seek that the consideration offered in its tender offer for the acquisition of Vueling Airlines, S.A. ('Vueling') of €7 per share qualifies as an equitable price."

IAG said that it ruled out raising the bid and that it could waive its condition of having a minimum acceptance of 90% of non-IAG shareholders. Nonetheless, it has no plans to delist the remaining shares.

LS

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Prepare for the end of the epic bubble in US stocks
US stockmarkets

Prepare for the end of the epic bubble in US stocks

US stocks are as expensive as they’ve ever been. How can you prepare your portfolio for a bubble bursting?
18 Jan 2021
The best investment trusts to buy for 2021
Investment trusts

The best investment trusts to buy for 2021

Sectors ranging from emerging markets to student accommodation look poised to do well this year, says David Stevenson, as he picks the best investment…
19 Jan 2021